Business
Veris Gold Corp. Announces Granting of an Order Under the Companies' Creditors Arrangement Act
VANCOUVER , June 9, 2014 /CNW/ - Veris Gold Corp. ("Veris" or the "Company") (TSX: VG) ...
About this update from Volcanic Gold Mines Inc.
[{"type":"text","content":"\n\n\nVANCOUVER, June 9, 2014 /CNW/ - Veris Gold Corp. (\"Veris\" or the \"Company\") (TSX: VG) (OTCQB: YNGFF)\n (Frankfurt Xetra Exchange: NG6A) announces that the Supreme Court of British Columbia has today issued an\n order granting the Company's application for creditor protection under\n the Companies' Creditors Arrangement Act (\"CCAA\"). The order also\n extends protection to Veris' subsidiaries Queenstake Resources Ltd.,\n Ketza River Holdings Ltd., and Veris Gold USA, Inc. Ernst & Young Inc.\n will serve as the Court-appointed Monitor in the CCAA proceedings to\n oversee the operations of the Company and report to the Court during\n the restructuring.\n\n\nThe Company has also received a temporary restraining order from the US\n Bankruptcy Court following a hearing on the afternoon of June 9 in\n Nevada.  The temporary restraining order is in effect pending a full\n hearing of an application for recognition of the CCAA proceedings\n pursuant to Chapter 15 of the US Bankruptcy Code.  As a result, United\n States creditors are restrained from taking action against the Company\n and the other CCAA Petitioners, including Veris Gold USA, Inc.\n\n\nThe decision to commence CCAA proceedings was made after extensively\n exploring alternatives following thorough consultation with its legal\n and financial advisors. As well, the Special Committee has for some\n time been working diligently on the restructuring and refinancing\n efforts. The Company sought protection to address near term liquidity\n issues due to a decreasing gold price, higher than anticipated\n production costs, demands for payment under existing loan agreements\n (see the Company's News Release dated June 3, 2014) and unexpected shut\n downs including the January 2014 shutdown resulting from the December\n 2013 fire.\n\n\nIn these circumstances, the Company's Board of Directors determined that\n a CCAA proceeding is the most prudent and effective way to carry on\n business and maximize value for the Company's stakeholders. The Company\n seeks to continue operational restructuring alternatives while under\n CCAA protection, including reducing or restructuring its obligations\n and reducing operating costs.  Any such restructuring will be\n undertaken for the purpose of further enhancing the Company's long term\n financial health, liquidity and...